4 Factors that impact the cost of travel insurance
So you are planning a trip, and looking into travel insurance, but you are not sure how much it is going to cost you. Well, like with any other form of insurance, the cost of travel insurance is determined by a number of different factors. While some factors may hold more weight than others, when it comes to travel insurance there are 4 main factors that impact the cost of your coverage.
Type of coverage you get
When getting travel insurance, there are a number of options available to you. The type of coverage you need can be determined by a number of different things, how long your trip is, where are you going, if your current work benefits offer any sort of travel coverage, etc. Depending on your situation you can determine which type of coverage is right for you. If you are unsure, speak with your insurance broker and they can help to point you in the right direction.
Length of trip
Depending on the length of the trip you are taking, whether a weekend in NYC, or extended stay in Florida for the season, there are different options for travel insurance coverage. If you know that you will be traveling a lot over the course of the year, you can opt for an annual insurance plan. While it may come with an initially higher price tag, you will save money in the long run because you will not have to set up multiple small policies. You also gain the convenience of knowing that you are covered year-round.
Trip location
As discovered this past summer when HUB Insurance Hunter did a series of articles looking into the price of travel insurance for destinations around the world, location is not the biggest factor when determining coverage costs. However, even though it is not over substantial, it still plays a part, especially if you are traveling outside of your home country. The difference in costs usually comes down to whether you are travelling within Canada and North American, or elsewhere across the globe.
Just be sure to be careful about travelling to locations with travel advisories, as your travel insurance may not cover you.
Your age and medical history
In most cases your age and medical history are the biggest determining factors when your insurer calculates the cost of your travel insurance. For example, travel insurance for a 25-year-old healthy female, is much easier to obtain than coverage for a 67-year-old male with a pre-existing medical condition. And, like with any other type of insurance, those who are considered “high-risk” tend to pay a premium for their coverage. This doesn’t mean that you can’t get coverage/affordable coverage if have a pre-existing condition, there are providers out there who specialize in that sort of travel insurance. The golden rule of shopping around applies here to find the best possible coverage at the most reasonable cost.